Learn the trade here. Make it on tradeMONSTER

Options Trading News

March 20, 2013  Wed 8:32 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Do you think that the Fed is going to back away from its bond-buying program today? Do you believe that the Russians are going to pull out every red cent from Cyprus tomorrow? (The deposits will already be taxed before they take them out, so they will pull out AFTER the tax.) If your answer is yes, then right now is the time to sell.

Do I think you should do it? I am cognizant that when the European Central Bank says it will provide liquidity it recognizes that the Cypriot banks will be nationalized almost immediately and will be wound down with tremendous losses to, yes, the ECB. That's the bearish scenario that makes the Fed irrelevant.

TheStreet.com logoI think that the ECB recognized--as did the International Monetary Fund when it came up with this plan--that every penny would come out of the banks when they open and that they have some contingency plan. But if you think they don't have one, don't just stand there, obey the bears and roll out.

I reiterate that I don't like the tape. I reiterate that I don't like that we have seen parabolic moves, and I do worry about Cyprus and the Fed.

But I think that when we look back, it might not be the watershed moment or two that people tell me I should be more fearful of. As stupid as the policy makers in Europe are, can they reach the same conclusions as the bears and act to save the situation and Uncle Ben?

I have trusted him for four years, and I am not backing away now.
Share this article with your friends


Related Stories

SPX

Cramer: Answering all the critics

October 24, 2014

Wednesday's session was infuriating. The moment this market went down big, it was a terrific opportunity to buy. But so many people offered excuses not to.

SPX

Futures pause after sharp rebound

October 24, 2014

U.S. equity futures are pointing to a lower open this morning after stocks rallied sharply yesterday, recovering losses from the previous session.

SPX

Earnings, housing data top docket

October 24, 2014

The earnings parade will continue to dominate the agenda today. New home sales at 10 a.m. ET are the only economic data scheduled for release.

SPX

Strong earnings push futures higher

October 23, 2014

Caterpillar is up more than 4 percent after blowing out estimates. General Motors, 3M, Southwest Airlines, Comcast, and Eli Lilly are higher as well.

SPX

Jobless claims, earnings top docket

October 23, 2014

Jobless claims will be reported at 8:30 a.m. ET. The pre-market earnings lineup includes General Motors, 3M, Eli Lilly, Union Pacific, Celgene, Comcast, American Airlines, and Under Armour.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER